Performance Motors prices its automobiles to achieve a 15 to 20 percent profit on its investment.This approach is called ________.
A) value-based pricing
B) going-rate pricing
C) cost-plus pricing
D) low-price image
E) target profit pricing

Question

Quizplus · Accepted Answer

Target profit pricing is a pricing strategy where a company sets prices to achieve a specific profit margin or target profit, in this case, 15 to 20 percent.

Performance Motors Prices Its Automobiles to Achieve a 15 to 20